330Consequences of rule off

1. If a fidelity fund is ruled off by an Order in Council made under section 329(1), the society by which that fund is held—

2. must distribute the total amount of the fund at the time of rule off in accordance with subsection (2); and
3. must make all reasonable efforts to recover any amount owing to the fund at the time of rule off; and
4. must distribute, in accordance with subsection (2), any amounts recovered.

5. Any amount to be distributed under subsection (1) must be distributed as follows:

6. first, by paying all liabilities and administrative costs properly payable from the fund at the time of rule off; and
7. second, by distributing any residue that remains (after any amounts payable under paragraph (a) have been deducted) by paying, on a pro rata basis, all claimants who have, under subsection (3), payable claims.

8. Claims that are subject to pro rata distribution under subsection (2)(b) are claims that, on the date the fund is ruled off,—

9. are claims that have been approved for payment by the regulatory society that holds the fund; or
10. are claims in respect of which judgment has been entered.

11. An Order in Council made under section 329(1) in relation to a fidelity fund does not affect claims made against that fund after the date on which that fund is ruled off by the Order in Council.